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3 Top-Ranked Stocks With Upgraded Broker Ratings to Bet on

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The macroeconomic environment continues to be uncertain. In such a situation, it is difficult for individual investors to pick stocks independently and generate robust returns. For this, one has to understand the fundamentals of a company and try to place them against the present economic background to figure out how it may fare as an investment.

One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks like TripAdvisor Inc. (TRIP - Free Report) , MercadoLibre, Inc. (MELI - Free Report) and GoDaddy Inc. (GDDY - Free Report) are worth a look.

As brokers directly communicate with the top management, they have a better insight into what is happening in a particular company. They assess companies’ publicly available documents and even attend conference calls.

Brokers have more understanding of the overall sector and industry. They place company fundamentals against the current economic backdrop to determine how a particular stock will fare as an investment.

When brokers upgrade a stock, one can easily rely on their judgment. However, depending on broker upgrades is not the correct way to build your investment portfolio. Several other factors should be taken into account to ensure steady returns.

Selecting the Winning Strategy

We have a screening strategy that will help in your search for potential winners:

Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price Greater Than $5: The stocks must trade above $5.

Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank Equal to #1 or 2: Despite good or bad market conditions, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Here are three stocks that qualified for the screening:

Massachusetts-based TripAdvisor is one of the largest online travel research companies in the world. TRIP provides a platform for users to share reviews, ratings and opinions on hotels, destinations, attractions and restaurants.

TRIP’s earnings for 2023 are expected to rally 43.1%. TripAdvisor, carrying a Zacks Rank #2, has witnessed a 6.7% upward revision in broker ratings over the past four weeks.

Headquartered in Uruguay, MercadoLibre is one of the largest e-commerce platforms in South America. MELI is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico and Uruguay based on unique visitors and page views.

MercadoLibre’s 2023 earnings are projected to surge 139.2%. MELI, carrying a Zacks Rank #2 at present, has witnessed an 8.3% upward revision in broker ratings over the past four weeks.

GoDaddy, based in Tempe, AZ, is an Internet domain registrar and web hosting company that also sells e-business related software and services. GDDY is engaged in the design and development of cloud-based technology products for small businesses, web design professionals and individuals.

GoDaddy’s 2023 earnings are projected to rise 23.1%. GDDY, carrying a Zacks Rank #2 at present, has witnessed a 6.7% upward revision in broker ratings in the past four weeks.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:

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TripAdvisor, Inc. (TRIP) - free report >>

MercadoLibre, Inc. (MELI) - free report >>

GoDaddy Inc. (GDDY) - free report >>

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